Home / Housing / House: $58m in 2006. Sold for $29m, 2012. Property Tax, 2011: $7,900. Hmmmmm.
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House: $58m in 2006. Sold for $29m, 2012. Property Tax, 2011: $7,900. Hmmmmm.

Written by Gary North on February 11, 2013

Someone thought he had a really good deal in 2006. It was listed for sale in 2006 in San Francisco in for a mere $58,000,000. A steal!  A once-in-a-lifetime opportunity. “Don’t rent. Own.”

It just sold for a little under $29 million.

Easy come. Easy go.

But there is the matter of property taxes. The owner paid $7,900 in 2011.

If I were a home owner in San Francisco, I might wonder a bit. I might dig out my tax receipts for 2011. I would divide my tax bill by the market value of my property to see what the percentage was. Then I would divide $29 million by $7,900.

I get (in round numbers) .0003. That’s three one-hundredths of a percent.

The city did not foreclose for unpaid taxes. “Let it ride.”

I would file an appeal with the tax authorities to get a reduction.  Nothing unreasonable. Say, five one-hundredths of a percent.

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5 thoughts on “House: $58m in 2006. Sold for $29m, 2012. Property Tax, 2011: $7,900. Hmmmmm.

  1. I bought my first house when I was 19 (3 years ago.) It sold in 2007 for $78,000, I closed for $10,000 at an FHA auction. The state equalized value was placed at $28,600. Meaning the powers at play valued my $10,000 house for an astounding $57,200. I went and stated my case before the city council, they were gracious to lower the estimated value to $55,000. They claimed that my $10,000 price did NOT reflect the market and that I had gotten a special deal….from the government.

    This is why new home ownership in cities is dying, this is why smart people won't move into cities.

  2. Cliffystones says:

    This is also why citizens should demand no property tax on your principal residence.

  3. Wowser! I wish my house were in that tax jurisdiction! I own a rental house in upstate NY that I paid 29k for (that's k, not m!). That's also about the current market value–can you say, "crash proof"?! My tax bill is about $1500/yr. So I'm paying about 5% of the market value of the house each year to the city. Whew! This is why NY state is drying up. Let's see…$29k (.0003)=$8.70. Yeah, that'd be just fine!

  4. Texas Chris says:

    "This is also why citizens should demand no property tax."

    There, fixed it for you.

  5. politicians cannot not spend , just raise taxes on the property owners , give the companies a tax break when they threaten to move